Active Finance Catalyst & Advisors

Conducting Computer Based Comprehensive Course on

Financial Modeling & Valuation: Using Excel

(Duration: 75hours/ 10Days)

For Registration Contact/ Mail us:

Tel: 07498603076 / 9004459173 /9967813782/ 022-64646421
Email: [email protected] | [email protected]

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TABLE OF CONTENTS
Workshop Objective ............................................ 3
About the Workshop ........................................... 4
- Who should attend?
- Key Features
- Teaching methodology
- Outcomes of the Workshop

Agenda and Schedule .......................................... 5-7

Pre Requisite(S) ...................................................... 8
About The Presenter............................................... 8

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Disclaimer: Active Finance Catalyst & Advisor (AFC & Advisor) reserves the right to alter any part of the published
program or faculty. In the event of course cancellation by Active Finance Catalyst & Advisor due to unforeseen
circumstances, the firm limits its liabilities to refunding the tuition fee of the course.

WORKSHOP OBJECTIVE

The objective of the course is to provide basic as well as complex modeling skills with
practical training and hands on exercises on financial modeling using spreadsheets. The
syllabus is loaded with all necessary techniques of financial modeling and the best
utilization of Statistical tools in the areas of research and analysis.

Financial Modeling is a tool that can be used to forecast a picture of a security or a

financial instrument or a companys future financial performance based on the historical
performance of the entity. The program covers step-by-step lessons ranging from basic
fundamentals to advanced features and their application in professional jobs.

Financial modeling helps managers to make more informed decisions and, crucially, win
corporate commitment for those decisions. The ability to construct useful financial models
with speed and accuracy is becoming a key skill for all executives to master.
Gives managers the tools to build better financial models - now a core skill, this will
improve organizational learning through improved assessment of collective knowledge
Enables managers to create better targeting when building a financial model - from
forecasting and planning, to valuation and risk assessment, this is the definitive guide to
building and manipulating financial models with confidence.

The candidate would learn logically approach the client requirements and apply various
valuation concepts, financial modeling techniques and MS-Excel based advanced
formulas to prepare a free-flowing, accurate and dynamic financial models. The course will
help delegates gain Excel Proficiency- Calculations, Functions, Formulas, Optimization
and Statistical Tools and Excel Best Practices in Financial Modeling.

At the end, the participants should be able to forecast a full three statement model of a given
company and recommend the stock from the Buy/Sell perspective.
Regards
Program Coordinator

Pooja Gupta MFA, CFA, PGDM, B.Tech

Tel: 07498603076 / 9004459173/02264646421 / 09220230711
Email: [email protected] | [email protected]

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Salient Features:
The salient features of the program are to design and structure different financial problems and translate
them into Excel; understanding the techniques to quickly audit the robust models, excel tools to build
flexibility in the models, advanced application of functions in executing nitty-gritty of models, and
implement sensitivity& charting techniques.

100% excel based practical workshop

Step by step exposure to basic & advanced concepts

Assignments & Case study based approach

Extensive & Focused training delivered by experts

Concept-Implement-Practice model of training ; Implementation of Concepts to real life problems

Personalized training to each and every participant

Workshops customized to corporate need

Help to learn financial modeling with more accurate information to support decision making

Enables managers to create better targeting when building a financial model

From forecasting and planning, to valuation and risk assessment, we guide to building and
manipulating financial models with confidence

It will help executive and finance managers to turn business data into intelligent decisions

Outcomes of the Workshop / Participant will be skilled in:

Once you attend these workshops you will be benefitted in your day to day work to achieve new
milestones by bringing efficiency & accuracy in your work.

Learn Financial Modeling, Valuation Analysis and Raising Capital - the most critical skills needed
for jobs in Financial Analysis, Investment Banking, Equity Research, Credit Analysis etc. who work
in, or aspire to get into Investment Banks, Quality KPOs, Brokerage Houses.

The participant will be able to

Apply MS Excel skills for Problem Solving, Sensitivity Analysis & Data Modeling

Understand and Apply Financial Analysis, DCF and Relative Valuation

Prepare Company Profiles, Valuation Snapshots and evaluate historical and current trends of a
company

Be trained on powerful inbuilt functions in excel that helps you to save time and work efficiently

Effectively forecast trends of the firm using analysts tool like Horizontal Analysis, Vertical
Analysis And Ratio Analysis. Incorporate elements such as Risk, Sensitivity, Optimization And
Forecasting into financial models

Insights to various sophisticated fundamental valuation tools as used by Investment Bankers with
key focus on Transaction and Trading Comps, DCF, SOP, Equity and EV Multiples.

Learn complex financial Modeling by identifying and utilizing key business drivers and integrating
them into a three statement forecasting model.

Practical tips for checking and debugging the mode

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Program Structure & Training Methodology:

The program is structured to make the participant well versed with the fundamentals before moving on to
Valuation.

Laptop based exercises

Theory would comprise 25-30% of the Program

Focus on Model Building and Revenue Build-up Techniques applied on a Listed Company, SOTP
included !

Build an Integrated Model with DCF Valuation, from Scratch !

Highly interactive, use of extensive case studies, ppts and real life examples for demonstrating key
concepts.

Unique One-to-One Approach: We take an individual, one-to-one approach in helping our trainees
achieve their goals

Build a Comparable Company Analysis Sheet !

Emphasis on:
I.

Participants gaining practical, hands-on experience of the financial statement understanding and
analyzing in excel sheet.

II.

Fundamental understanding of key issues by solving case studies.

Never before seen 10: 1 Participant-Trainer has ratio assured personal attention!

Case Study Approach ensures that participant can test his/her skills!

Focus on Valuation and Revenue Build-up Techniques applied on a Listed Company!

Build a Comparable Company Analysis Sheet!

Plenty of Excel Tips, Tricks and Shortcuts covered.

Comfortable pace and non-mechanical approach, guarantee a fun learning experience

Take home pack includes

100+ Excel Exercises and 200+ hard to find - Keyboard Accelerators

Study Material of 750+ Slides.

Step-by-Step DCF valuation guide (Following Mckinsey approach)

Comprehensive Sales Forecasting (Revenue build-up) Guide

Step-by-Step Trading Comparables guide

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AGENDA AND SCHEDULE

Session1: Excel Essentials

Manipulating Rows/Columns, Borders & Sheets

Using the Paste Special box
Count, Counta, Countblank, Average, Max, Min, Round &
Abs
Using Conditional Formatting
Working with Named Ranges
Using Vlookup, Hlookup and Lookup
Nesting with the IF function: Using If, And & Or
Sensitivity Analysis with Data Tables
Creating multi-dimensional formulas with Referencing
Charting - Commonly used & 3Axis charts

Macro Perspective:

Country Research
Growth Potential of a Country
Company Analysis
monetary and fiscal policies of the country
Global Factors which affect the Market
Political Stability
Economic conditions
Rupee Dollar Parity (Exchange rate)
Crude Oil Prices
FIIs flows, capital account convertibility
Cross border financial services.

Industry Research understanding industry, demand drivers,

supply mapping, demand supply assessment, pricing, raw
material, Michael Porters 5 force analysis for sector
Equity Research Introduction and Valuation
meaning, concept, tools and techniques, Approach and role of
valuation Top down & bottom up approach, Company/
Industry/ Economy Approach

Session2: Financial Statement Analysis

Learn the methods used by analyst to evaluate past, current and
projected conditions and performance of the firm using techniques
like horizontal analysis, vertical analysis and ratio analysis.

Dupont analysis (3x5)

- Dupont expression for a company ROE
-Use in coporate analysis

Pro forma income and balance sheet statement

Ratio Analysis
Liquidity Analysis
Common size statements
Internal liquidity analysis
Operating/ Risk / Growth Analysis

Session3: Understand and Apply Trading

Comparables
What is a multiple?
Identifying comparables

Gathering information

Choosing appropriate peer group

Calculating equity value and enterprise Value (EV)

Normalizing earnings

Calculating last twelve months (LTM)

Adjusting the enterprise value (EV)

Calculating fully diluted shares outstanding (options

& convertibles)

Enterprise value multiples:

EV/Sales, EV/EBITDA,

EV/EBIT, EV/FCF,

EV/Capacity

Equity value multiples: P/E, P/CF, P/BV, PEG,

Dividend Yield

Other Valuation approaches

Residual Income Method

Abnormal ROE Method

Calculating various multiples

Present results with Sensitivity Analysis & well formatted
Charts.

Sectors Overview:

Power
Capital Goods
Automotive
Aviation
Business Services
Financial Services
Oil Gas
Retail
Telecom
Utilities

Session4: CAPM
CAPM

Risk analysis: Inventory Valuations, Depreciation Policies, Analysis of Beta

Leases, Capitalization vs Expensing, Income Taxes.
Systematic vs Unsystematic risk

Creating the first financial statement model in Excel to

begin with
Modeling Income Statement & Balance Sheet
Getting the model to balance and using the model as a
decision making tool.
Excel overview , Excel navigation & Menu commands
Entering, moving, & manipulating data
Managing worksheet & workbook information
Formatting worksheets, Adjusting Column Width / Row
Height, Formatting Cell Using Toolbar, Formatting Cell
Using Menu Options.
Case Study (Formatting)

Regression beta
Bottomup beta
Preferred beta methodology
2 ways of calculating Raw beta
The process of Unlevering and relevering beta
Case Study | Calculate & Analyze the above for a
listed company
Market risk premium

Historical risk premium

Forecast risk premium method

Market risk premium: size premium

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Session5: Analysis of WACC

WACC Basics & Popular misconceptions busted
Extrapolating each component of the equation
Stub period discounting &the mid-year adjustment factor
Types of Risk premiums Country Risk, Market Risk, Credit
Risk & Size premium
Estimating the Cost of Equity: The right approach to MRP
Estimating cost of Preference Capital: Preference Equity
Estimating cost of Convertible Debt & FCCBs
Pitfalls in estimation
The right approach to estimating Continuing WACC
Case Study (WACC)
Valuation overview
Why valuation?
Importance of valuation
Valuation approach
Key valuation tools
Valuation summary table
Key valuation questions
Valuation subjectivity versus objectivity
Valuation Fundamentals & FAQs
Why do share prices move up ?
Valuation methods in brief
Why DCF ? Are dividends important ?
Do Dividends & Share Buybacks create value ?
What is Value Creation? Does DCF really work ?
Significance of EVA and MVA ?
A Birds Eye view of the Enterprise DCF method
So what is SOTP/Multi-business valuation ?
Sesion5 & 6: Valuation Techniques- DCF, Relative,
Comparable Transaction and EVA
Candidates will benefit and gain from valuable insights to valuation
tools used by Buy Side/Sell Side analyst and Investment Bankers.
Some key areas of focus will be Discounted Cash Flows, Sum of Parts
Valuation, Equity and Enterprise Value Multiple valuations.

Risks
Unsystematic risk
Systematic risk
Discount Rate: Analysis of WACC
WACC Basics & Popular misconceptions busted
Extrapolating each component of the equation
Types of Risk premiums Country Risk, Market Risk,
Credit Risk & Size premium
Cost of Debt
a. Yield to maturity method
b. Credit rating method
c. Synthetic rating method
d. Company report method (spot check!)
Cost of Equity
Sensitivity Analysis
TABLE Function
Session6: Discounted Cash Flows (Financial Modeling)
Free cash flow
Valuing a firm using FCFF
Valuation using FCFF & FCFE
Suitability of FCFF and FCFE
DCF Projections: Sales, Operating expenses, Depreciation,
Capital exp., Income tax, Working capital, deferred tax.
Working Capital Schedule
Depreciation Schedule
Amortization Schedule
Long Term Items (Others) Schedule

Preparing Projected Income Statement

Preparing Projected Balance Sheet
Preparing Cash Flow Statement Shareholders Equity
Schedule Dealing with New Issues, buybacks &
Warrants/Esops
Shares Outstanding Schedule
Preparing for Debt & Interest
Long Term Debt Schedule (Waterfall Type)
What are Debt Covenants ? Can they be modeled?
Analysis of Cash Reserves and Application
Modeling & Analysis of Minority Interest
Investments & Loans and Advances Schedule
Short Term Debt Schedule Advanced Issues
resolved!
Modeling & Analysis of Intangibles
Treatment of dividends while modeling
Integrating it all without plugs
Error Proofing the model
Circular Reference
Trouble Shooting
Completing the Financial Model
The right Treatment of Taxes
Compute non-diluted and diluted share value

Terminal Value
Terminal value overview

Exit value method

Exit multiple exercise

Perpetuity growth method

Perpetuity growth exercise

Terminal value spot check

Terminal value concerns

Session7: Other Valuations Approaches

Asset based valuation, Sum of parts, Mergers and

acquisitions comparables, Replacement cost method,
Qualitative factors in valuation - management quality

Session8: Valuation Fundamentals & FAQs

Why do share prices move up ?

Valuation methods in brief

Why DCF ? Are dividends important ?

Do Dividends & Share Buybacks create value ?

What is Value Creation? Does DCF really work ?

Significance of EVA and MVA ?

A Birds Eye view of the Enterprise DCF method

So what is SOTP/Multi-business valuation ?

Session 9: Merger and Acquisition Analysis

Cash flow/headroom available for strategic

purposes
Cash and stock mix for deal financing
Accretion/ dilution analysis
Potential credit rating impact

Session10: Live Case Studies

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PRE REQUISITE(S)
Delegates should be familiar with Microsoft Excel (though not necessarily expert in the use thereof, as any
relevant Excel function pertinent to an exercise will be discussed prior to tackling the exercise).
Excel knowledge required:
Opening & closing files
Moving around the spreadsheet
Inserting & deleting rows and columns
Inserting text & formulas
Deleting cells
Copying formulas
Printing
Basic formulas (+-*/) e.g. =E6+F7+sum(A9:B12), and =F5*G6/12
Formatting
It is assumed that the participants have basic understanding of finance and valuation
It is assumed that the participants are familiar with operational excel e.g. SUM, AVERAGE, SAVE,
SAVEAS, formatting etc. basics, although knowledge of advanced functions are not assumed.
Basics of Finance and accounting
Corporate Valuation Methodologies
Note: These application driven programmes lead delegates through various Excel functions, explaining the functions
and their uses.
These are very hands-on, non-intimidating courses delegates work through various exercises under the supervision,
and with the help, of the facilitator to get to grips with the nuances of Excels functions
Who are the Trainers?
The Trainers have worked across projects related to Financial Modeling, Equity Valuation & Risk Management. They
have also developed comprehensive industry approved financial models from scratch.
ABOUT THE PRESENTER:
Core Qualifications: MS finance, CFA (ICFAI), CFPcm, MMS finance (NIT, Rajasthan), B.Tech (Govt. College),
Dip TD (ISTD), NCMP-2 (NSE), DICM (Willingkar), CFA L-2 Candidate (CFAI, USA)
Total Work Experience: 8Years+
He is MS Finance, MMS & B.Tech with experience in Equity Research and a Certified Financial Analyst (CFA,
ICFAI).
He has spent 8 years in Indian Capital Markets and work in the area of Equity Research, Business Analyst, Trading
and Clients Wealth Management. He worked as Manager- Equity Research to building and reviewing financial
models. He is a Certified Corporate Finance Professional from Dun & Bradstreet.
He worked in various positions with leading corporations/public limited firms likes ISE India Ltd, Financial
Technologies (I) Ltd, Standard Chartered Securities Limited and Indiabulls. The presenter have years of practical
experience in working with Financial Modeling.
Test / Pre Assessment:
Each participant can be screened for relevance of the course to their skill levels

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